A2A and B2B integration with Microsoft Dynamics AX

Below, I've tried to summarize both technical and functional key options available in Microsoft Dynamics AX for A2A (Application-to-Application) and B2B (Business-to-Business) integration:

Primary framework for integration with Microsoft Dynamics AX

Microsoft developed Application Integration Framework (AIF) as a primary platform for A2A and B2B integration with Dynamics AX. It's actually more secure replacement for the Microsoft Axapta Commerce Gateway used in previous versions of AX.

AIF represents an XML-based technology stack that provides document-oriented interface to support multiple asynchronous transports, as well as synchronous transport to reliably exchange documents in XML format with trading partners or other systems. The framework includes adapters and Web services that enable document exchange.

The asynchronous information exchange in AIF is provided by transport adapters of the following types (by transport mechanism): MSMQ adapter (Microsoft Message Queue), File System adapter (documents exchanged to and from folders on a computer), BizTalk adapter (uses the .NET Business Connector in Microsoft Dynamics AX to send messages to and receive messages from BizTalk Server), and Outbound Web Services. The adapter converts the document into the proper format for exchange by means of a particular transport mechanism.
Adapter-based exchanges are asynchronous - the document is moved into a queue where it waits for processing by a Microsoft Dynamics AX batch job. Customized transport adapters can be added to address specific needs.

The AIF also provides a Web services interface for exchanging documents synchronously using Inbound Web services (require IIS). This interface provides a seamless integration experience for Microsoft .NET and other Web clients. The Web services are generated automatically from the Microsoft Dynamics AX business logic, so that developers with limited Web experience can easily create their own Web services.

AIF includes out-of-the-box support for sending and receiving commonly used documents such as free text invoices, inventory transactions, etc.

EDI with Microsoft Dynamics AX

EDI standard, being quite old but mature and still in wide use, is conceptually supported in AX - with the use of BizTalk server. You can either: implement EDI for AX by customizing schemas in BizTalk (it's packaged with thousands of EDI schemas that can be used as starting point); or implement specialized partner solutions for AX (e.g. this one to mention) or for BizTalk (e.g. another one). EDI solution for AX can be based on AIF or can use its own (alternative) code base.

Intercompany transactions in AX

Intercompany transactions are basically trade operations between affiliated legal entities/business divisions of a holding-like organization (for example, between production plant and distribution organization of one same company).

In AX intercompany transactions can be set up for multiple companies residing in one common database. This means that all companies involved in intercompany operations should use centralized AX solution. For affiliated companies that's usually not a problem.

Intercompany transactions in AX represent next level of business integration support in business solutions - process integration when process in one company can electronically trigger processes in other companies, as opposed to traditional data integration.

The intercompany functionality in AX includes such operations as purchase and sale between companies, price check between companies, conversion of order charges, ledger dimensions, and warehouse transactions, and etc. The intercompany mechanism adds visibility into the intercompany supply chain so it becomes traceable and transparent accross companies involved, with interconnected sales and purchase orders referring each other.

AX also provides intercompany accounting functionality. It allows you, for example, to manage distributed operations in branches while having centralized accounting - when transactions from branches transfer to the head office for further processing. In general, a single transaction entry in one company can be posted to multiple companies by using intercompany accounting.

The intercompany mechanism in AX is technically based on AIF.

Sharing data in AX using Virtual Companies

Virtual companies ('technical' term) in AX help share data between (affiliated) companies residing in the same database. For example, all (or some of) the companies in the holding organization can share the same common chart of accounts, customers, and inventory items. So, once you update the inventory item, all updates become visible in all companies that share the same item master data.

This is one of the mechanisms available in AX that help maintain compliance practices and uniformity in the organization.

Financial Consolidation in AX

There is a special functionality in AX for consolidation of financial information (in the form of consolidation transactions) - from subsidiary companies into a parent company, to finally provide consolidated financial reports for the entire group. The companies involved in the consolidation can reside in the same or different databases.

Other integration options for AX

The list of options available for A2A and B2B integration with AX can be further extended with customized tools and partner solutions of various kinds. I'd welcome your comment on this post if you are aware of other compelling options for integration with Microsoft Dynamics AX.

© Andrey Maslov